USDT (the stablecoin released by Tether) is experiencing impacts from Chinese investors returning suddenly to the stock markets of their country.
Bloomberg has reported that USDT at times trades below the US Dollar since September’s end.
The dollar, or another asset is usually pegged at 1:1 to stablecoins.
Dessislava aubert, senior researcher at the blockchain data company Kaiko, said that stablecoin discounts coincided with China’s central bank taking several measures to ease an economic outlook which sent stock prices surging higher.
Livio Weng is the chief executive of Hong Kong’s Hashkey crypto exchange.
Aubert says the USDT is a stablecoin, but the USDT has a slight discount.
China has banned crypto trading, but mainlanders continue to purchase and sell digital currency using overseas exchanges and accounts. According to the report, it is hard to use exchange data to identify if Chinese traders are solely responsible for USDT sales.
Binance’s peer to peer trading shows that Chinese yuan buyers are willing to offer the stablecoin at a rate between 6.78 and 6.98 yuan. The yuan is currently trading at $7.07 when it comes to the exchange rate of the dollar on the traditional currency markets.
Between September 23rd and September 30th, the Shanghai Composite Index rose 21%.
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The post Tether USDT Affected By ‘Panic Buy’ of Chinese Stocks : Report can be updated as new information becomes available.
